HQ 0734222 - The country of origin marking requirements for a vinyl belt and cotton woven shorts that are imported and sold together and made in the same country; sets, T.D. 91-7, ORR Ruling 331-69, HQ 722549 - United States International Trade Commision Rulings

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HQ 734222
December 9, 1991

MAR-2-05 CO:R:C:V 734222 RSD

CATEGORY: MARKING

Area Director
New York Seaport
United States Customs Service
6 World Trade Center
New York, New York 10048-0945

RE: The country of origin marking requirements for a vinyl belt and cotton woven shorts that are imported and sold together and made in the same country; sets, T.D. 91-7, ORR Ruling 331-69, HQ 722549

Dear Madam:

This is in response to your memorandum, IA 33/91, dated June 14, 1991, requesting internal advice on the country of origin marking requirements for a vinyl belt and shorts made in the same country and that are imported and sold together. A sample of the merchandise was received for our consideration.

FACTS:

The merchandise consists of cotton woven shorts and a vinyl belt, each of which is made in Bangladesh. The belt is not of the same fabric or design as the shorts.

There is a difference in opinion among National Import Specialists as to whether the belts must be individually marked to indicate their country of origin if the shorts are acceptably marked and both the shorts and the belts are made in the same country. One opinion indicates that both the shorts and the belts should be individually marked to indicate their country of origin. This opinion places great emphasis on the language of the marking law which states "every article of foreign origin imported into the United States shall be marked." Because the belts and shorts are separate articles, it is felt that they both should be individually marked with their country of origin. It is thought that if only the shorts are marked with the country of origin, the ultimate purchaser might not be aware that the belt and shorts are made in the same country. The ultimate purchaser might assume that the unmarked belt would be of U.S. origin or could wonder about the origin of the belt. The other position is that a common sense approach should be used in determining which items in a set should be marked. The ultimate purchaser would recognize the country of origin of both articles by requiring only one marking on the shorts. This is because the belts and shorts are bought and sold as one unit. Requiring that both the shorts and belts be individually marked would impose a new and additional expense on the importing community. It is also pointed out that when a garment and a belt are imported and sold together most field import specialists have indicated that they require that only the garment be marked with the country of origin.

ISSUE:

Does a vinyl belt which is imported and sold together with shorts have to be individually marked to indicate its country origin, if both the belt and the shorts are made in the same country?

LAW AND ANALYSIS:

Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article. Congressional intent in enacting 19 U.S.C. 1304 was that the ultimate purchaser should be able to know by an inspection of the marking on the imported goods the country of which the goods is the product. "The evident purpose is to mark the goods so that at the time of purchase the ultimate purchaser may, by knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should influence his will." United States v. Friedlaender & Co., 27 C.C.P.A. 297 at 302 (1940).

Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.41(b), Customs Regulations (19 CFR 134.41(b)), mandates that the ultimate purchaser in the U.S. must be able to find the marking easily and read it without strain. The ultimate purchaser is generally the last person in the United States who will receive the article in the form in which it was imported. (Section 134.1 Customs Regulations (19 CFR 134.1)).

In T.D. 91-7, January 16, 1991, Customs indicated that for purposes of 19 U.S.C. 1304, the relevant inquiry regarding the marking of the material or components in a collection, such as shorts and a belt, is whether such items have been substantially transformed as result of their inclusion in the set, mixture, or composite good. However, we also indicated in T.D. 91-7 that in certain circumstances the marking of every item in a collection of goods may not be consistent with the purpose of the marking statute, or may be impractical and/or undesirable. This may be because one or more items in the collection are relatively insignificant and would have no influence on the purchasing decision, because the items in the collection are too numerous making it impractical to specify the country of origin of each item, or for various other reasons. Therefore, Customs will continue to employ a "common sense" approach to determine the marking requirements applicable to articles which comprise a collection of goods.

In several previous cases, where all items of a "set" were made in the same country, Customs has indicated that it was not necessary to separately mark each item in the set if marking one item will clearly indicate the country of origin of all the items in the set to the ultimate purchaser. In ORR Ruling 331-69, October 14, 1969, Customs indicated that a legible and conspicuous country of origin marking in the jacket of a suit will reasonably indicate the country of origin of a two or three piece men's or ladies' suits made in the same country. HQ 722549, February, 16, 1984, concerned the country of origin marking requirements for a communication terminal consisting of an electronic telephone with memory, calculator calendar digital time clock, and desk blotter. All of these items were assumed to be a product of Canada. We stated that it was not necessary to mark each component individually if only one country of origin marking appeared in such a way that on assembly such marking was clear and conspicuous to a prospective purchaser examining the system on display.

In this case, the belts and the shorts are also made in the same country. In accordance with ORR Ruling 331-69 and HQ 722549, we find that because the shorts and the belt are sold together as a unit, if the shorts are properly marked to indicate their country of origin, the ultimate purchaser would reasonably conclude that the belt was made in the same country. In other words, where the shorts and belt are made in the same country, marking the shorts with the country of origin will reasonably indicate to the ultimate purchaser the country of origin of the belt as well. Therefore, if the shorts are clearly marked to indicate the country origin, then the separate marking of the belt is unnecessary and superfluous. If the vinyl belt and shorts are not made in the same country, then separate marking of the belt is required. See HQ 733964, April 2, 1991. HOLDING:

A belt which is imported and retailed together with a pair of shorts does not have to be separately marked to indicate its country of origin, if the belt and the shorts are made in the same country and the shorts are properly marked to indicate the country of origin.

Sincerely,

John Durant, Director
Commercial Rulings Division

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